A merger wave can be set off
a. by government restrictions that prevent firms from reaching their minimum efficient scale
b. if the federal government raises corporate income taxes.
c. if the federal government lowers corporate income taxes
d. if minimum efficient scale falls
e. by some change in a market, such as a shift in market demand.
E
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No tax can lead the economy to higher levels of efficiency
a. True b. False Indicate whether the statement is true or false
Which of the following events could explain an increase in interest rates together with a decrease in investment?
a. The government budget went from surplus to deficit. b. The government instituted an investment tax credit. c. The government reduced the tax rate on savings. d. None of the above is correct.